FTX Europe Ownership Restored to Founders Amid Dispute Resolution

FTX, a bankrupt cryptocurrency exchange, has resolved a dispute regarding its European division, returning ownership to its original founders. The Swiss startup Digital Assets AG, later rebranded as FTX Europe, was initially procured in a significant transaction in 2021.

FTX agreed to sell FTX Europe back to its founders for $32.7 million

Amidst challenges in securing alternative buyers, FTX agreed to vend FTX Europe back to its founders for $32.7 million, as reported by Reuters on 24th February. This decision signifies a pivotal step in resolving the ongoing conflict surrounding the exchange's European arm.

The legal dispute during the acquisition process of FTX

Before consenting to the sale, FTX endeavored to recuperate the expenses incurred during the acquisition. Allegations surfaced, suggesting that the purchase involved client funds and asserting an excessively high acquisition price, leading to a lawsuit filed by the exchange. The founders, Patrick Gruhn and Robin Matzke, refuted these claims and counterclaimed $256.6 million from FTX.

The dispute over FTX's European operations is resolved

The dispute, which escalated over time, reached a settlement on 21st February, as disclosed by Reuters. This resolution brings closure to a prolonged legal battle and marks a significant development for FTX and its European operations.

FTX Europe: Attracting Industry Attention and Addressing Operational Challenges

FTX Europe attracted attention from various cryptocurrency firms, including Coinbase, Trek Labs, and Crypto.com, during its brief operational tenure. Despite operational challenges, such as its Chapter 11 filing in the United States and subsequent acquisition attempts, FTX Europe made efforts to cater to European clients, notably launching a withdrawal portal in March 2023.

FTX Bankruptcy Liquidation Plan: Client Compensation and Asset Sale

As FTX nears the conclusion of its bankruptcy proceedings, plans are underway to fully reimburse clients, amounting to billions of dollars. As part of this effort, the company was granted authorization to divest more than $1 billion in shares in the artificial intelligence company Anthropic.